Connecticut Senate Bill SB00887

Connecticut 2011 Regular Session

• Introduced: 2/3/11
• Refer: 2/3/11
• Report Pass: 3/30/11
• Refer: 4/11/11
• Report Pass: 4/18/11
• Refer: 4/27/11
• Report Pass: 5/3/11
• Report Pass: 5/4/11
• Engrossed: 5/31/11
• Report Pass: 6/1/11

Caption

An Act Concerning Uninsured Motorist Coverage For Bodily Injury To A Named Insured Or Relative During The Theft Of A Motor Vehicle.

Impact

The proposed amendments are significant as they alter the insurance landscape within the state. If passed, this bill will directly modify the regulatory framework surrounding auto insurance policies in Connecticut by expanding coverage rights for individuals involved in theft-related incidents. By modifying the parameters under which coverage is denied, the bill seeks to ensure fair treatment of insured individuals who suffer from such unfortunate events, emphasizing consumers' rights to adequate protection.

Summary

Senate Bill 00887 aims to amend the existing uninsured motorist coverage policy in Connecticut to provide broader protections for named insured individuals and their relatives. Specifically, it proposes that insurers cannot deny uninsured and underinsured motorist coverage to a named insured or their relatives simply because they were struck by a vehicle during the theft of that vehicle. This change is intended to enhance the protections offered to policyholders, ensuring they are covered in situations involving vehicular theft, which is a growing concern for many drivers.

Sentiment

Overall, the sentiment towards SB00887 appears favorable among consumer advocacy groups and many legislators who recognize the need for improved safety nets for insured individuals. By addressing gaps in the insurance policy, supporters argue that the bill serves public interest and enhances consumer trust in the insurance system. However, concerns may arise from insurance companies regarding potential increases in claims costs, which could affect premium rates in the long run.

Contention

Notably, some contention may arise over the potential financial implications of the bill for insurers, especially regarding how they will manage claims related to vehicle theft. There is a possibility that this legislation could lead to more claims being filed, resulting in higher premiums for policyholders or a reassessment of underwriting guidelines by insurers. Therefore, while the bill's intent is to strengthen consumer protection, it raises questions about its long-term viability and impact on the insurance market.